The North West Provincial Coordinating Council (NWPCC) has welcomed the determined efforts made by municipalities in the province in preparing their Annual Financial Statements (AFS) for submission by the set date of 31 August 2014. This contentment was expressed today at the Coordinating Council’s special meeting held in Mahikeng to ascertain the local and district municipalities’ readiness to submit.
The meeting follows a two-month long evaluation exercise carried out by the Provincial Department of Finance, Economy and Enterprise Development’s Municipal Finance unit, which was aimed at assessing amongst others, the municipalities’ capacity to produce AFS internally, the existence and effectiveness of their audit committees as well as their ability to properly manage the record keeping systems.
While the assessment gave a generally positive reflection on primarily municipalities’ readiness to comply with the Auditor General’s due date, the Coordinating Council expressed its solemn concern regarding some municipalities’ ongoing reliance on consultants for preparation of their annual financial statements, and the non-participation of Ngaka Modiri Molema District in this assessment exercise.
“There is a pressing need for the provincial government to walk the road with the municipalities with a particular focus on their capacity to handle financial matters, which includes producing Annual Financial Statements internally,” said Premier Supra Mahumapelo who is the chairperson of the Provincial Coordinating Council.
Mahumapelo reiterated the significance of auditing municipalities’ finance human capacity, saying “we cannot forever rely on the consultants for preparation of our financial statements”.
“The province will soon ensure centralisation of some of the critical functions such as Finance, Engineering and Information and Communications Technology, this with a view to build strong capacity at a district level,” stated Mahumapelo who maintains that this approach will assist local municipalities to address system challenges as raised by the Auditor General in prior years.
Premier Mahumapelo said the provincial government will put extra ordinary measures in place to reinforce the work of the municipalities, this in line with the strategic vision of rebranding, repositioning and renewal of the province.
Acknowledging Ngaka Modiri Molema District’s commitment to bridge the gaps as stated and other municipalities’ discernible drive to ensure utmost compliance to the processes as set, Mahumapelo urged municipalities to not compromise quality in preparing their financial statements.
The meeting was attended by Executive Mayors and Mayors, Municipal Managers, MECs, Heads of Departments and the Chief Financial Officers.
Enquiries:
Bonolo Mohlakoana
Acting Provincial Head of Communication
Cell: 082 901 2435
E-mail: Bmohlakoana@nwpg.gov.za
